RHB ASEAN FUND RESPONSIBILITY STATEMENT

Transcription

1 Date: 3 September 2017 RHB ASEAN FUND RESPONSIBILITY STATEMENT This Product Highlights Sheet has been reviewed and approved by the directors of RHB Asset Management Sdn Bhd and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable enquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in the Product Highlights Sheet false or misleading. STATEMENT OF DISCLAIMER The Securities Commission Malaysia has authorised the issuance of RHB ASEAN Fund and a copy of this Product Highlights Sheet has been lodged with the Securities Commission Malaysia. The authorisation of the RHB ASEAN Fund and lodgement of this Product Highlights Sheet, should not be taken to indicate that the Securities Commission Malaysia recommends the RHB ASEAN Fund or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Product Highlights Sheet. The Securities Commission Malaysia is not liable for any non-disclosure on the part of RHB Asset Management Sdn Bhd responsible for the RHB ASEAN Fund and takes no responsibility for the contents of this Product Highlights Sheet. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Product Highlights Sheet, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

2 This Product Highlights Sheet only highlights the key features and risks of RHB ASEAN Fund. Investors are advised to request, read and understand the Disclosure Documents before deciding to invest. PRODUCT HIGHLIGHTS SHEET RHB ASEAN FUND Name of Fund Manager RHB ASEAN Fund ( Fund ). RHB Asset Management Sdn Bhd. Trustee HSBC (Malaysia) Trustee Berhad. Fund Category Equity fund. Commencement Date 2 December Financial Year End 30 April. This Fund is suitable for investors who: (i) (ii) PRODUCT SUITABILITY wish to participate in the potential and investment opportunities of the fast growing ASEAN economies; and are willing to accept higher risk in their investments in order to achieve medium to long term* capital growth. KEY PRODUCT FEATURES INVESTMENT OBJECTIVE This Fund aims to achieve medium to long term* capital appreciation through investments in securities of companies with high growth potential. *Note: medium to long term in this context refers to a period of between 3-7 years. INVESTMENT STRATEGY The Fund seeks to achieve its investment objective by investing primarily^ in the securities of companies that are expected to benefit from the on-going development and growth of the ASEAN region (i.e. Malaysia, Singapore, Thailand, Philippines, Indonesia, Vietnam, Myanmar, Cambodia, Laos and Brunei) and opportunistically^ from the on-going development and growth in Asia (i.e. India, China, Hong Kong, Korea, Taiwan and Japan). In managing the Fund, the Manager will seek out companies that are exposed to the key development and growth trends that the Manager identifies as drivers of business and security markets performance. The Manager expects that security market investment themes will evolve over time influenced by the on-going growth and development cycles and investor sentiment for the ASEAN region and in Asia. The Manager will use proprietary and/or secondary, fundamental research to identify the main economic and social trends expected to drive company profitability and security markets performance over the next 2 3 year time horizon and will invest in a diversified portfolio of the securities of such companies that are expected to benefit most from those themes and trends. Over time, the main themes that influence the performance of ASEAN and Asian capital markets will likely change, reflecting the dynamic underlying economic and social development across the region and within individual countries. Themes may vary based on underlying economic development such as energy, transportation and communication infrastructure investment and intra-regional trade; social development such as rising middle class consumption and private savings accumulation and investment; capital market development such as privatisation; and investor themes such as high yield corporate bonds. The Manager will use proprietary and/or secondary research and in-house regional expertise to identify the development of these themes. The Manager will actively manage the securities in the portfolio and the portfolio construction will be based on the themes identified to maximise the benefit for the portfolio. By adopting an active management approach to security selection and portfolio construction, whereby the portfolio underlying stocks, sector and country exposures will change depending on the themes that the Manager thinks are relevant, the portfolio is expected to be evergreen benefiting over time from multiple investment themes. The Fund will focus on a minimum of three (3) themes at any one time from the evolving ASEAN and Asian trends identified by the Manager as having strong potential to outperform the benchmark, MSCI South East Asia Index (RM). In managing the Fund, the Manager will employ a multi-step investment process, combining a bottom-up investment process that involves rigorous company research with a top-down process to review asset allocation at both the regional/country and sector levels. Asset allocation and geographical weightings are derived after analysing macro economic trends and country dynamics. Country and portfolio exposure limits are in place to mitigate the risks of the investments. The Manager believes long term investment performance can be achieved by employing a rigorous research process that enables them to identify companies that have the potential to generate returns that are above the country s or sector s average returns as well as by identifying companies that are undervalued. In constructing the Fund s portfolio, the Manager will invest in securities issued by companies listed on or traded in the ASEAN and Asian markets such as Malaysia, Singapore, Thailand, Philippines, Indonesia, Vietnam, India, China, Hong Kong, South Korea, Taiwan and Japan. From time to time the Manager may also invest in securities of ASEAN and Asian companies that are listed on or traded in the markets of other countries (i.e. US, United Kingdom and Australia) where the Manager believes those companies will benefit from the main investment themes that have been identified in the course of its proprietary and/or secondary research and investment analysis. The Fund s investments in the companies that are listed on or traded in these other countries will be limited to companies that have at least 50% of its revenues derived from countries in ASEAN and Asia and/or have at least 50% of its business operations located in these countries as determined at the point of purchase of such securities. The Fund s investments will also include collective investment schemes investing RHB ASEAN Fund 2

3 primarily in the ASEAN and Asia countries. The Fund will generally have an exposure of 70% to 98% of Net Asset Value in equity and equity related securities (such as warrants) to generate returns to the Fund. However, the Manager may lower the equity exposure of the Fund in favour of fixed income securities such as government and semi-government bonds, corporate debt securities and money market instruments in order to help reduce the risk of loss to capital. Accordingly, the Fund s exposure to fixed income securities may increase up to 30% of Net Asset Value. The Fund s investment in fixed income securities are those with a minimum rating of BBB (for long term fixed income securities) or P1 (for short term fixed income securities) by RAM Rating Services Berhad ( RAM ) or the equivalent rating by a global rating agency such as Standard & Poor s, Fitch Ratings or Moody s Investors Service. The Fund may also invest in fixed income securities which are unrated. However, when investing in such unrated fixed income securities, the Manager will rely greatly on its own credit analysis of the issuer and/or the securities. This Fund s portfolio will be structured as follows: 70% to 98% of Net Asset Value - Investments in equities and equity related securities (such as warrants). Up to 30% of Net Asset Value - Investments in fixed income securities such as government and semi-government bonds, corporate debt securities and money market instruments. 2% - 5% of Net Asset Value - Investments in liquid assets including money market instruments and deposits with financial institutions. Subject to the range stipulated above, the above asset allocation will be reviewed from time to time depending on the judgment of the Manager as to the general market and economic conditions. Although the Fund is actively managed, how active or the frequency of its trading strategy will very much depend on market opportunities. The risk management strategies and techniques employed by the Manager include diversification of the Fund s investments in terms of its exposure to various industries, sectors, countries and asset classes and/or type of investments (i.e. equity, fixed income securities and money market instruments). Financial derivatives may also be used for hedging purposes where appropriate. Generally, the assets of the Fund will be invested over a medium to long term* period with disposal of the investments when necessary to control risk as well as to optimise capital gains. This is especially so when the full growth potential of an investment is deemed to have been reduced over a prolonged rise in equity values and the other available investments may present cheaper valuations and potential higher returns. The Fund also complies with the permitted investments and restrictions imposed by the Securities Commission. Adherence to the permitted investments and restrictions also helps the Manager to risk-manage the Fund s portfolio in terms of diversification. Moreover, the Manager in making its investment decisions shall at all times comply with the investment restrictions of the Fund and requirements as set out in the Deed. *Note: medium to long term in this context refers to a period of between 3 7 years. For investments in foreign markets, the Manager in managing the principal risks such as country risk and currency risk will always take into consideration the reference benchmark as well as its evaluation of the historical developments and its prior experience in such markets. Such practice will be managed through active management and constant review of the economic and political developments of the countries invested. Investments will ultimately be made based on risk-reward. The Manager may take temporary defensive positions that may be inconsistent with the Fund s principal strategy in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate up to 100% of the Fund s equity investments into other asset classes such as fixed income securities, money market instruments and deposits with financial institutions, which are defensive in nature. These are deposits that are not embedded with or linked to financial derivative instruments (structured deposits) and (where applicable) these are current accounts, short term money market deposits and short term deposits with financial institutions. Explanatory notes: ^ primarily refers to at least 70% of Net Asset Value and opportunistically means investing up to 30% of Net Asset Value in the securities of companies which are exposed to the investment themes identified by the Manager that influence the performance of the Asian capital markets. BENCHMARK MSCI South East Asia Index (RM). DISTRIBUTION Distribution Mode Distributions, if any, after deduction of taxation and expenses (i.e. net distribution), will be reinvested to purchase additional units of the Fund based on the Net Asset Value per unit as at the first Business Day when units in the Fund are quoted ex-entitlement. Allotment of such units shall be within two (2) weeks thereafter. Distribution Policy Consistent with the Fund s objective which aims to achieve medium to long term* capital appreciation, distributions will therefore be of secondary importance. Distributions, if any, will be reinvested after deduction of taxation, if any, and expenses. *Note: medium to long term in this context refers to a period of between 3-7 years. KEY RISKS As this Fund s investments will focus on securities issued by companies whose businesses are in ASEAN countries, it may be subject to a higher level of risk than an equities portfolio which is not restricted to a particular geographical region/market. Thus, there is a risk that the Fund will perform poorly during an economic downturn or in the event of adverse news affecting the said region/market. As this Fund may invest up to 98% of its Net Asset Value in foreign markets, it may be subject to further risks, such as currency risk and country risk. The country risk and currency risk are as elaborated below: RHB ASEAN Fund 3

4 Currency Risk Where a percentage of the value of the Fund is invested in foreign currency or assets denominated in a foreign currency, the Fund may be exposed to currency risk. Fluctuation in foreign exchange rates will affect the value of the Fund s foreign investments when converted into local currency and subsequently the value of Unit Holders investments. This risk can be mitigated by investing in a wide range of foreign currency denominated asset thus diversifying the risk of single currency exposure. Hedging may be applied to mitigate the currency risk, if necessary. Country Risk In addition to currency risk, the Fund is also subject to country risk. The value of the assets of the Fund may also be affected by the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund may invest. Further, when investing in foreign markets, there are countries which may require prior approvals before investments can take place. For example, if and when the Fund invests in countries such as China, Taiwan, South Korea, India and Vietnam, such countries require the application of an investment license or registration of an investor code before any investment can be made in these countries. As such, if investments in such countries are undertaken, there may be a risk that such registration or licence may be revoked or not renewed by the relevant authority and the Fund s investment in these countries may be affected. The effect on the Fund s investments will depend on the regulatory requirements of the respective countries. For example, if a foreign market requires the Fund to obtain an investment licence which is subject to renewal and if such investment licence is not renewed in a timely manner, this may result in the Fund s investment account in that country being frozen by the regulator resulting in investment activities for the Fund in that country being suspended. To mitigate this, the Manager will monitor closely the adherence of investment regulatory requirements in such countries. Furthermore, share investments are susceptible to the movements of share prices which can rise or fall for a number of reasons such as industry trends, economic factors, changes in a company s operations, management and financial performance as well as market perception of that particular company. Other risks associated with investments in equities and equity related securities (i.e. warrants) are as elaborated below: Market Risk Market risk is a risk that arises when the prices of investments in the marketplace are affected by circumstances such as political or economic events. These circumstances, which may be a local or global event can affect the markets where the Fund is invested in and subsequently the value of the Fund s investments. Particular Security Risk The fluctuation in the performance of each individual security that the Fund invests in will affect the price of the units of the Fund. Not all companies issuing these securities are successful. The success or failure of the companies will cause its securities value to rise or fall. Valued collectively, the performance of individual securities comprising the Fund s portfolio will cause the unit price of the Fund to rise or fall accordingly. Equity Related Securities Risk The Fund may also invest in equity related securities such as warrants. As warrants are linked to the particular equity securities from which they are derived, the warrants inherit the risks linked to that underlying equity such as market risk, currency risk, country risk, industry risk and liquidity risk. A movement in the prices of the underlying equity securities of the warrants will generally result in a larger movement in the prices of the warrants, thus, the higher volatility of investments in warrants. In the event of a decline in the market, warrants can lose a substantial amount of their values, far more than equity securities and vice versa. Warrants also have a limited life and if they are not exercised at the maturity, they will expire and become worthless causing the value of the Fund s investments to fall. Like any other investment, the fall in the value of the Fund s investments will ultimately lower the NAV. FUND PERFORMANCE AVERAGE TOTAL RETURNS OF THE FUND Total Returns (%)^^ Average Total Returns of RHB ASEAN Fund in comparison with the Benchmark Year 30/04/ /04/ Years 30/04/ /04/ Years 30/04/ /04/ Since Launch 22/12/2009* - 30/04/2017 RHB ASEAN Fund Benchmark^ Source: Lipper IM. ^ MSCI South East Asia Index (RM). ^^ The abovementioned Fund performance is computed on NAV to NAV basis and has been adjusted to reflect distributions and unit splits, if any. * Being the last day of the Fund s initial offer period. Since launch, the Fund recorded an annualised return of 8.12% outperforming its benchmark which recorded an annualised return of 6.14%. The Fund has met its objective achieving medium to long term capital appreciation. RHB ASEAN Fund 4

5 Total Returns (%) ** ANNUAL TOTAL RETURNS OF THE FUND Source: Lipper IM. ^ MSCI South East Asia Index (RM). ^^ The abovementioned Fund performance is computed on NAV to NAV basis and has been adjusted to reflect distributions payments and unit splits, if any. For the latest financial year, the Fund recorded a gain of 16.57% whilst its benchmark, recorded a gain of 17.37%. The performance came mainly from Singapore, Thailand and Indonesia, while Malaysia and Philippines lagged. In previous financial years and periods, the Fund outperformed its benchmark in four financial years/periods, namely in 2011, 2013, 2014 and Since launch, the Fund has registered five positive returns with the highest return of 25.17% recorded in 2011 (outperforming the benchmark return of 16.43%) and the worst performance of -2.88% recorded in 2016 (outperforming the benchmark return of -6.71%). Portfolio Turnover Ratio ( PTR ) Annual Total Returns of RHB ASEAN Fund in comparison with the Benchmark^ PORTFOLIO TURNOVER RATIO Financial Year Ended 30 April times 0.79 times 1.92 times The PTR for the financial year was higher compared with previous financial year as there was lower average net asset value for the financial year under review. ASSET ALLOCATION As at the latest financial period (i.e. 30 April 2017), the Fund was 92.03% invested in equities, 2.13% invested in real estate investment trust and the remaining 5.84% was invested in liquid assets and other net current assets. As at 30/04/2017 % -2.9 As at 30/04/2016 % As at 30/04/2015 % Equities Construction Consumer Products Finance Hotels Industrial Products Infrastructure Project Companies Mining Plantation Properties Technology Trading/Services Real Estate Investment Trust Liquid Assets and Other Net Current Assets The asset allocation was reflective of the Manager s stance to risk manage its portfolio in an environment of volatile markets Since Launch 22/12/09*- 30/04/10 RHB ASEAN Fund Benchmark^ RHB ASEAN Fund 5

6 DISTRIBUTION RECORD Financial Year Ended 30 April Gross distribution per unit (sen) Net distribution per unit (sen) For the financial year under review, no distribution has been proposed by the Fund. PAST PERFORMANCE OF THE FUND IS NOT AN INDICATION OF ITS FUTURE PERFORMANCE. FEES & CHARGES This table describes the charges that you may directly incur when you buy or redeem units of the Fund: Charges Sales charge 1 by distribution channels Institutional Unit Trust Adviser (IUTA) Up to 5.50 % of investment amount. Tied (retail) agent Up to 5.50 % of investment amount. Direct sales (Direct investment Up to 5.50 % of investment amount. with the Manager) An investor can expect differing sales charge to be levied when buying units of the Fund from the various distribution channels and within each distribution channel, subject to the maximum sales charge stipulated herein. This is due to the different levels of services provided by each distribution channel and/ or the size of the investment undertaken. Repurchase charge None. Dilution fee/transaction cost factor None. Other charges payable directly by the investors Switching fee 1 RM25.00 per switch or the difference in sales charge which is deductible from the redemption amount of the units to be switched, where applicable. Transfer fee 1 RM5.00 per transfer. This table describes the fees that you may indirectly incur when you invest in the Fund: Fees and Expenses Annual management fee 1 Annual trustee fee 1 Expenses directly related to the Fund Other fees payable indirectly by an investor (if any) 1.80% per annum of Net Asset Value before deducting the Manager s and Trustee s fees for that particular day. Up to 0.08% per annum of Net Asset Value before deducting the Manager s and Trustee s fees for that particular day (excluding foreign custodian fee and charges). Auditors fees and other relevant professional fees, custodial charges, cost of distribution of interim and annual reports, tax certificates, reinvestment statements and other notices to Unit Holders, commissions paid to brokers, other transaction costs and taxes. None. 1 The implementation of GST is effective from 1 April 2015 at the rate of 6% and the fees or charges payable are exclusive of GST. Note: The Manager may, for any reason at any time, waive or reduce the amount of its management fee only or all charges directly payable by the Unit Holder and/or investor in respect of the Fund, either generally (for all Unit Holders and/or investors) or specifically (for any particular Unit Holder and/or investor) and for any period or periods of time at its absolute discretion. TRANSACTION INFORMATION Minimum Initial Investment Minimum Additional Investment Minimum Repurchase Units Switching Facility and Frequency of Switching Minimum Investment Balance RM1,000 or such other amount as the Manager may from time to time accept. RM100 or such other amount as the Manager may from time to time accept. Any number of units. Available. Minimum amount for a switch is RM1,000. There are no restrictions as to the number of switches or the frequency of switching. Minimum investment balance at all times must be one hundred (100) units after the switch. 100 units or such other lower quantity as the Manager may from time to time decide. RHB ASEAN Fund 6

7 Transfer Facility Redemption Period Available. In the event of a partial transfer, both the transferor and transferee must each hold a minimum investment balance of one hundred (100) units after the transfer. Redemption monies to be paid within ten (10) days after receipt by the Manager of the request to repurchase. For EPF Unit Holders, the redemption monies will be remitted to EPF by crediting into the members provident account. Cooling-off Period Unit Holders have the right to request for a refund of their investment within six (6) business days # which shall be effective from the date of receipt of the application by the Manager, subject to eligibility. # These are the working days when the Manager is open for business. Dealing Hours 9:00 a.m. to 4:00 p.m. (Malaysia time) on any Business Day or such later time as the Manager may determine provided always that complete applications for the Fund are received before the next valuation point. YOU SHOULD NOT MAKE PAYMENT IN CASH TO A UNIT TRUST CONSULTANT OR ISSUE A CHEQUE IN THE NAME OF A UNIT TRUST CONSULTANT. VALUATIONS AND EXITING FROM INVESTMENT VALUATION OF ASSETS The Fund must be valued at least once every Business Day. However, certain foreign markets in which the Fund may invest in have different time zones from that of Malaysia. Accordingly, the valuation of the Fund for a Business Day will be conducted before 5:00 p.m. on the following day in which the Manager is open for business, when the closing prices of the foreign markets for that Business Day would be available. As such, the daily price of the Fund for a particular Business Day will not be published in the newspapers on the next day but will instead be published the next following day (i.e. the price will be two (2) days old). This will be specifically indicated in the newspapers. Investors may however obtain the most current computed price by contacting the Manager directly or visiting our website, EXITING FROM THIS INVESTMENT Units of the Fund can be redeemed by forwarding the completed form of request to repurchase to the Manager s registered office or any of its branch offices, or to any of its authorised sales agents or participating IUTAs before their respective cut-off times. The redemption monies will be paid within ten (10) days after receipt by the Manager of the request to repurchase. For EPF Unit Holders, the redemption monies will be remitted to EPF by crediting into the members provident account. For partial redemption, the balance of units of the Fund held after the redemption must be at least one hundred (100) units or such other lower quantity as the Manager may from time to time decide (the minimum investment balance ). There are no restrictions on the number of units a Unit Holder can redeem out of his investments or the frequency of redemptions in a year. However, the Manager shall not be bound to comply with any request for redemption of units if the balance of units held after the redemption is less than the minimum investment balance. CONTACT INFORMATION To contact the Manager or to find out about the distribution channels of the Fund, you may call Unit Holders Services Toll-Free Hotline: at any time during office hours: Mondays through Fridays from 9.00 a.m p.m. or your enquiries to rhbam@rhbgroup.com or visit our website, HOW DO YOU LODGE A COMPLAINT? 1. For internal dispute resolution, you may contact: (a) via phone to : (b) via Unit Holders Services Toll-Free Hotline at : (c) via fax to : (d) via to : rhbam@rhbgroup.com (e) via website at : (f) via letter to : RHB Asset Management Sdn Bhd Level 8, Tower 2 & 3, RHB Centre, Jalan Tun Razak, Kuala Lumpur. 2. If you are dissatisfied with the outcome of the internal dispute resolution process, please refer your dispute to the Securities Industry Dispute Resolution Center (SIDREC): (a) via phone to : (b) via fax to : (c) via to : info@sidrec.com.my (d) via letter to : Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A RHB ASEAN Fund 7

8 Menara UOA Bangsar No. 5, Jalan Bangsar Utama Kuala Lumpur 3. You can also direct your complaint to the Securities Commission Malaysia ( SC ) even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC s Investor Affairs & Complaints Department: (a) via phone to the Aduan Hotline at : (b) via fax to : (c) via to : aduan@seccom.com.my (d) via online complaint form available at : (e) via letter to : Investor Affairs & Complaints Department Securities Commission Malaysia No 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur 4. Federation of Investment Managers Malaysia (FIMM) s Complaints Bureau: (a) via phone to : (b) via fax to : (c) via to : complaints@fimm.com.my (d) via online complaint form available at : (e) via letter to : Legal, Secretarial & Regulatory Affairs Federation of Investment Managers Malaysia , 6 th Floor Wisma Tune No. 19 Lorong Dungun Damansara Heights Kuala Lumpur GLOSSARY Business Day Disclosure Documents Fund GST Net Asset Value (NAV) RM or Ringgit Malaysia Unit Holder(s) A day in which Bursa Malaysia Securities Berhad / Bursa Malaysia and the foreign markets* are open for trading. * foreign markets in which investments of the Fund having in aggregate values amounting to at least 50% of the Fund s Net Asset Value are invested therein. The Fund s prevailing prospectus and its supplementary(ies) (if any). RHB ASEAN Fund. Goods and services tax. The Net Asset Value of the Fund is determined by deducting the value of all the Fund s liabilities from the value of all the Fund s assets, at the valuation point. The lawful currency of Malaysia. The person(s) for the time being registered under the provisions of the deed as the holder of units of the Fund and includes person(s) jointly so registered, and where applicable includes the Manager. RHB ASEAN Fund 8